Latest news with #drugmakers
Malay Mail
a day ago
- Business
- Malay Mail
AstraZeneca beats Q2 forecasts on booming US drug sales, eyes US$80b revenue by 2030
LONDON, July 29 — AstraZeneca Tuesday beat second-quarter revenue and profit expectations on robust sales of newer cancer, heart and kidney disease medicines and strong demand in the US, where it has invested US$50 billion (RM212 billion) to expand amid tariff threats from Washington. The performance is a boost for the UK's largest-listed company by market value as the wider sector braces for US tariffs on pharmaceutical imports and navigates pressure after President Donald Trump's order pushing for drugmakers to cut US prices to what other countries pay. AstraZeneca shares rose as much as 2.2 per cent by 0813 GMT. The drugmaker in April forecast only a limited impact from potential US tariffs, adding it would be able to meet its annual outlook if the levies on European imports were similar to those in other industries. A European Union-US trade deal over the weekend will result in a 15 per cent tariff on pharmaceuticals from the region. The US accounted for more than 40 per cent of AstraZeneca's revenue in 2024. The company had prioritised the market — the world's largest, worth US$635 billion — even before Trump's return to office. AstraZeneca is betting on a wave of expected launches of 20 new medicines and its US expansion to reach US$80 billion in annual revenue by 2030 and offset generic competition. On Tuesday, it maintained its 2025 outlook and increased its interim dividend by 3 per cent. 'Our strong momentum in revenue growth continued through the first half of the year and the delivery from our broad and diverse pipeline has been excellent,' CEO Pascal Soriot said. Cancer drugs outperform Sales of oncology drugs, constituting nearly half of AstraZeneca's revenue, were up 18 per cent at US$6.31 billion at constant currency rates in the quarter. Jefferies analysts said sales of drugs including Tagrisso, Lynparza, Calquence, Truqap and Imfinzi beat expectations. Total revenue for the three months ended June grew 11 per cent to US$14.46 billion, with double-digit growth in the US despite headwinds from changes in US Medicare price negotiations. Core earnings stood at US$2.17 per share. That compares with analysts' expectations of US$2.16, and US$14.15 billion in sales, according to a company-provided consensus. 'Operationally, this is the type of quarter we want to see,' Barclays analysts said. AstraZeneca is also hoping to move on from scandals in its second-biggest market, China, where it this year faced minor fines related to cancer drugs. It is also fighting patent challenges from an individual against Tagrisso. The company also delayed late-stage Avanzar trial data for a key lung cancer treatment to the first half of 2026. — Reuters
New York Times
2 days ago
- Business
- New York Times
Tariffs on Medicines From Europe Stand to Cost Drugmakers Billions
The trade deal reached between the United States and the European Union on Sunday will impose a 15 percent tariff on imported medicines from Europe. Drugmakers manufacture some of their biggest and best-known blockbusters there, including Botox, the cancer medication Keytruda and popular weight-loss drugs like Ozempic. The tariff rate is much lower than the levies of up to 200 percent that President Trump had threatened. Still, the new import costs stand to add billions of dollars in expenses for the drug industry and could lead to price increases for some medicines. That could translate into higher out-of-pocket costs and higher health insurance premiums for Americans. The 15 percent rate is final and will not be affected by the national-security-related tariffs that Mr. Trump is expected to impose on pharmaceuticals made elsewhere in the world, according to a White House official and senior European Commission officials. This outcome is something of a win for the pharmaceutical industry, which had feared that drugs from Europe would be hit with high levies related to national security. Both sets of pharma tariffs are expected to take effect simultaneously sometime next month, officials said. The pharmaceutical industry depends on a complex global supply chain: Production of most medications happens in multiple countries, with plants around the world handling different stages of the process. Europe is perhaps the most important piece of the global network that produces brand-name drugs — those with patent protection and typically high prices and fat profit margins. Pharmaceutical products are Europe's No. 1 export to the United States. European officials have expressed worries in recent months that pharma tariffs could prompt drugmakers to pull back on investments, at the expense of jobs, factories and tax revenue. Ireland in particular has become a pharma manufacturing hub, in part because doing business there helps drug companies lower their overall tax bills. Nearly all of the largest drugmakers have factories there. Last year, Ireland sent the United States $50 billion worth of pharma products, most of which were made by multinational drug companies. Europe manufactures the active ingredients for 43 percent of the brand-name drugs consumed in the United States, according to U.S. Pharmacopeia, a nonprofit that tracks the drug supply chain. No other region produces a greater share. Europe also makes active ingredients for 18 percent of the generic drugs taken in the United States, which have lower prices and account for a vast majority of Americans' prescriptions. Certain generic drugs made in Europe will be exempt from the new tariff, Ursula von der Leyen, president of the European Commission, said on Sunday. The White House and the European Commission did not respond to requests for comment on which generic drugs would be exempt. The threat of tariffs on generic medicines, which have thin margins, has raised concerns about exacerbating shortages. Experts who track pharmaceutical supply chains said they were not worried that brand-name drugs produced in Europe would go into shortage because they have such high profit margins. The new tariffs will be paid by drugmakers importing finished products or ingredients into the United States. Many are expected to try to pass at least some of the costs along to employers and government programs like Medicare that cover most of the tab for Americans' prescription drugs. Patients whose insurance requires them to pay a deductible or a percentage of a drug's price could eventually face higher out-of-pocket costs for some drugs. In some cases, however, contractual agreements and the threat of steep financial penalties may deter manufacturers from sharply raising prices. Some health insurance premiums are already set to rise. Insurers in New York, Oregon and Maryland recently told regulators that tariffs were prompting them to seek higher premium increases next year for certain health plans than they otherwise would have. The pharmaceutical industry has lobbied fiercely against the tariffs, saying that drugmakers could spend less on research and manufacturing in the United States as a result. 'Tariffs are not the answer for promoting greater domestic production of these products,' the drug industry's main lobbying group, PhRMA, said in a statement in May. For months, Mr. Trump has been promising to impose punishing tariffs on imported pharmaceuticals. His goal, he has said, is to bring more manufacturing back to the United States. In April, the Trump administration opened an investigation into whether imports of medicines and pharmaceutical ingredients threatened America's national security. Mr. Trump brought the inquiry under a legal authority known as Section 232, which he has used to justify tariffs on cars and other industries. With medicines from Europe exempt from Section 232 tariffs, those levies now threaten two of the other most important regions in the drug industry's global production network: India and China, both of which focus on generic drugs. India has been negotiating a trade deal that could address its giant generic drug industry and avert national-security-related tariffs from the United States. Ana Swanson and Jeanna Smialek contributed reporting.
Yahoo
2 days ago
- Business
- Yahoo
2 Top Dividend Stocks to Buy Right Now and Hold Forever
Key Points Amgen can replenish its lineup thanks to a deep pipeline. AbbVie has a knack for getting around headwinds. Both drugmakers have strong dividend track records. 10 stocks we like better than Amgen › Over the long run, dividends can make a significant difference in your returns, whether you choose to reinvest the payouts or retain the cash for other purposes. However, many companies that offer dividends aren't exactly attractive to hold on to for a long time. Some have somewhat shaky underlying operations, and others are not inclined to regularly raise their dividends. Thankfully, some income stocks on the market don't have these issues, and their shares are worth holding on to forever. Let's consider two examples: Amgen (NASDAQ: AMGN) and AbbVie (NYSE: ABBV). 1. Amgen If you're an income-seeking investor, Amgen has several qualities that you'll appreciate. First, it's a leader in healthcare, a defensive industry. The demand for the medicines that the company develops -- some of which are lifesaving -- won't stop even during economic downturns, nor will physicians stop prescribing them. Amgen is well equipped to perform regardless of economic conditions. The drugmaker generates consistent revenue and earnings. Second, it continues to innovate. True, it has encountered clinical setbacks of late; its investigational weight management medicine, MariTide, didn't perform as well in mid-stage studies as expected. However, the company recently reported phase 3 results for bemarituzumab, a medicine it's developing for gastric cancer, the fifth leading cause of cancer death worldwide. This product now appears likely to secure regulatory approval and make a meaningful contribution to Amgen's results for a while. The company will continue to face competition and patent cliffs, but it's been able to perform well over the long run despite these challenges, thanks to its innovative abilities. Amgen can also rely on licensing deals and acquisitions to bolster its lineup and pipeline. In 2023, it acquired Horizon Therapeutics and its medicine for thyroid eye disease, Tepezza, for about $28 billion. Amgen has been able to push Tepezza's reach far beyond what the smaller Horizon would have been able to accomplish; it earned approval for the medicines in countries like Japan and Brazil, while pouring money into advertising and marketing efforts. Third, Amgen has a strong track record of dividend payments. The biotech initiated a payout in 2011, and since then, it's increased its dividends every single year. It currently offers a forward yield of 3.1%, considerably higher than the S&P 500's average of 1.3%. And the cash payout ratio of 46.5% appears reasonable, leaving ample room for further payout increases. Amgen's ability to develop novel lifesaving medicines, its consistent financial results, and its regular payout increases make it a top dividend stock to buy and hold for the long term. 2. AbbVie Although AbbVie has lagged behind the market over the past three years, this period highlights the company's resilient qualities. After losing patent exclusivity in January 2023 for Humira, an immunology medicine that was its best-selling drug and also the most lucrative in the industry's history, management predicted that the company would return to top-line growth in 2025. AbbVie resumed revenue growth last year, ahead of schedule. It's not rare for drugmakers to go through several years of declining revenue following a major patent cliff, nor is it necessarily a cause for concern. AbbVie's ability to bounce back as quickly as it did speaks volumes about the strength of its underlying business, its ability to navigate competition -- biosimilar and otherwise -- and its long-term prospects. True, the company encountered a significant setback when a seemingly promising candidate for schizophrenia called emraclidine, which it had gotten its hands on through an acquisition, failed mid-stage studies. AbbVie has faced similar problems before and has bounced back. The company had bet on a cancer medicine called Rova-T to be a significant growth driver post-Keytruda. However, this medicine failed in the clinic. Instead, AbbVie is now relying on Skyrizi and Rinvoq, two immunosuppressants, to drive top-line growth. These medicines have surpassed its own expectations, and they should continue to be significant contributors for years to come. The company has consistently found ways to overcome setbacks and challenges. Its financial results remain robust; the pipeline is deep; the balance sheet is strong. And its dividend track record is outstanding: AbbVie is a Dividend King, boasting 53 consecutive years of payout increases. Its forward yield now tops 3.4%, while the cash payout ratio of 61.8% is still reasonable. This is another dividend stock that you could safely include in a long-term portfolio. Should you invest $1,000 in Amgen right now? Before you buy stock in Amgen, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amgen wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Amgen. The Motley Fool has a disclosure policy. 2 Top Dividend Stocks to Buy Right Now and Hold Forever was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
2 Healthcare Stocks That Are Losing to the S&P 500 This Year
Key Points Novo Nordisk and Regeneron have encountered challenges recently. Both companies are significantly trailing the market this year. These healthcare leaders still could perform well in the long run. 10 stocks we like better than Novo Nordisk › Even with all the volatility and the flirting with bear-market territory, the S&P 500 index is well in the green this year, up about 8% since early January. Some stocks haven't been so lucky, though. Novo Nordisk (NYSE: NVO) and Regeneron Pharmaceuticals (NASDAQ: REGN), two leading drugmakers, have underperformed for most of the year, significantly lagging the broader market. These healthcare giants are facing some headwinds, but does that mean investors should steer clear of them? Let's find out. 1. Novo Nordisk Novo Nordisk has been facing several challenges that predate this year. It encountered a clinical setback for what Wall Street thought was a promising weight management candidate. Furthermore, the company's financial results, although strong when compared to its similarly sized peers, were not seen as sufficient because it's held to a higher standard. These challenges have led to a terrible performance this year. Novo Nordisk's shares are down by 18% year to date, significantly lagging the S&P 500. However, the stock might be a steal right now. The company has made several moves that should allow it to recover. Novo Nordisk's pipeline, especially in diabetes and weight management, remains one of the strongest in the industry. It recently initiated a phase 3 study for amycretin -- its next-generation GLP-1 medicine -- in both subcutaneous and oral formulations. It requested regulatory approval in the U.S. for an oral version of semaglutide, its well-known medicine marketed as Wegovy for weight loss and as Ozempic for diabetes management. Novo Nordisk has also penned several licensing deals that have expanded its pipeline in weight management. The company should launch at least one new medicine in its core therapeutic area within the next few years. Financial results should remain strong as Ozempic and Wegovy continue driving solid revenue growth. Considering the stock's sell-off over the past years, shares now look more than reasonably valued relative to Novo Nordisk's growth potential. Their forward price-to-earnings ratio of 16.9 is in line with the healthcare industry's average of 16.5 as of this writing. However, Novo Nordisk typically grows its revenue and earnings faster than its peers. That makes its stock attractive at current levels, based on its growth potential. 2. Regeneron Pharmaceuticals Regeneron is facing biosimilar competition for Eylea, a medicine for wet age-related macular degeneration that was once one of its biggest growth drivers. Sales of the medicine have dropped, dragging total revenue down with them. That's the most important reason why Regeneron's shares are down by 19% since the year started. However, the stock is still attractive. The biotech might go through a period of its top line declining, but it can still recover. Here are three reasons why. First, the company's newer, higher-dose (HD) formulation of Eylea is taking market share away from its previous version. HD Eylea is performing well and will grow even faster once it earns some label expansions. Second, Regeneron has a deep pipeline that's expected to yield new brand approvals. Earlier this month, it earned the green light for Lynozyfic, a cancer medicine, in the U.S. One of its more promising candidates is a gene therapy for one type of genetic deafness, which is showing incredible potential in clinical trials. Regeneron should move beyond Eylea thanks to newer approvals. Third, the company's most important product, Dupixent, an eczema treatment, is performing exceptionally well. The medicine has earned important label expansions in recent years, including in treating chronic obstructive pulmonary disease (COPD) and a rare skin condition called bullous pemphigoid. Dupixent will maintain its upward growth trajectory for a while. Here's one more reason to invest in Regeneron: The company is committed to returning capital to shareholders. It recently initiated a dividend and has a robust share-buyback program in place. The stock might be moving in the wrong direction right now, but those willing to hold onto it for five years or more could see superior returns over the long run. Should you invest $1,000 in Novo Nordisk right now? Before you buy stock in Novo Nordisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Novo Nordisk wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Prosper Junior Bakiny has positions in Novo Nordisk. The Motley Fool has positions in and recommends Regeneron Pharmaceuticals. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy. 2 Healthcare Stocks That Are Losing to the S&P 500 This Year was originally published by The Motley Fool Connectez-vous pour accéder à votre portefeuille
Daily Mail
4 days ago
- Business
- Daily Mail
Big Pharma booms despite Trump tariff headache
Britain's two biggest drug makers are expected to reveal a profit surge this week as demand booms despite a looming threat of tariffs from the US. GSK, led by Emma Walmsley, is expected to report profit of £4.4 billion for the first half of this year on Wednesday, up from £2.9 billion the previous year, while sales are expected to inch up to £15.3 billion from £15.2 billion in 2024. AstraZeneca, the largest company on the London Stock Exchange, is forecast to report a half-year profit of £5 billion, which is £1.1 billion more than the year before, with sales expected to have increased 8 per cent to £20.6 billion. The sector is under pressure due to the threat of tariffs from the US, a critical market for both companies. President Donald Trump this month threatened to slap a 200 per cent levy on drug imports as part of an escalation of his trade war. His threats have pushed many firms to begin moving factories to – and making larger investments in – the US to protect themselves from retaliation. Last week, AstraZeneca announced plans to invest £37 billion in the US, which accounts for 42 per cent of its sales. The move has also fuelled fears it could switch its London stock market listing to the US, which would be a hit to the City. GSK suffered a blow in the US last week when American regulators recommended against approving the relaunch of its key blood cancer drug Blenrep, which had been pulled from the country in 2022 due to concerns about its side-effects.
